2013 BDA Public Finance Panel: Municipal Bond Tax Exemption

Recorded October 10, 2013 at 2013 Bond Dealers of America National Fixed Income Conference

The municipal bond tax exemption segment of the 2013 BDA Conference Public Finance Panel covers the "clear and present" threat to the tax-exempt status of municipal bonds, how the debate is shaping up, who supports it in Washington, and the important issues for state and local governments to focus on when they're lobbying Congress.

Continuing our 2013 BDA Conference public finance panel discussion last month, this roundtable webinar dives deeper into municipal disclosure issues, as well the reemergence of bond insurance as a viable option for some issuers.

• Disclosure details and suggested strategies. SEC Rule 15c2-12 requires ongoing disclosures by municipal securities issuers. We will provide a brief overview of required disclosures, material event qualifications and what issuers can do to prevent oversights. We'll also touch on recent regulatory penalties and opine on the possible future consequences of failed disclosure.
• Municipal bond insurance reemergence. As an important credit enhancement, municipal bond insurance almost completely disappeared during the financial crisis of 2008-2009. Are we seeing an insurance reemergence for small to medium issuers? If so, how might bond insurance lower borrowing costs for local governments, benefit investors and help stabilize the market?

Recorded October 10, 2013 at 2013 Bond Dealers of America National Fixed Income Conference

The municipal bond tax exemption segment of the 2013 BDA Conference Public Finance Panel covers the "clear and present" threat to the tax-exempt status of municipal bonds, how the debate is shaping up, who supports it in Washington, and the important issues for state and local governments to focus on when they're lobbying Congress.

Recorded October 10, 2013 at 2013 Bond Dealers of America National Fixed Income Conference

The municipal default and bankruptcy segment of the 2013 BDA Conference Public Finance Panel covers a number of topics, including Detroit, the treatment of GO bondholders, and the recent agreement between Stockton, California and Assured Guaranty.

Recorded October 10, 2013 at 2013 Bond Dealers of America National Fixed Income Conference

The municipal disclosure segment of the 2013 BDA Conference Public Finance Panel covers a number of points from an issuer point of view, including post-issuance disclosure requirements, why diligent information is crucial for issuers, and operating procedures – as well as a brief municipal bond insurer perspective.

Recorded October 10, 2013 at 2013 Bond Dealers of America National Fixed Income Conference

Confronted by political threats to the municipal tax exemption, perceptions of municipal bankruptcies and increasing demands on disclosure, issuers and bond insurers discuss how they will meet financing needs moving forward.

The bond market dropped dramatically in the second quarter – arguably the sharpest adjustment since the fall of 2008. For those forced to sell during the tumult, it was just as painful. But for others, it may be an equivalent buying opportunity.

Please join our municipal bond specialists for a discussion on key 2013 topics:
• Detroit default in proper perspective. Detroit hasn't been on the Bernardi approved credits list for decades, but its default has renewed municipal debt crisis fears nonetheless. We'll put the largest municipal bankruptcy filing to date in the proper context.
• The Great Rotation debate. Some pundits claim increasing yields mark the start of the “Great Rotation” from bonds into equities, but no one can be certain at this point. "Mattress money" may rotate more to cash out of fear – or within bonds to new buying opportunities.
• Laddered portfolios vs. alternatives as bond prices fall, yields rise. Our client’s separate account, laddered portfolios almost universally handled last quarter’s turmoil much better than the broader bond market – a storyline similar to that of the 2008-2009 financial crisis. We'll compare laddered portfolios to alternatives such as bond funds and simply holding cash as ways to prepare for future volatility.

Recorded October 20, 2012 at 2012 Illinois Municipal League Conference

In response to proposed legislation that would repeal or limit the tax exemption of municipal bonds, panelists discussed concerns related to altering the tax status of municipal bonds and the negative repercussions on the lives and pocketbooks of nearly every citizen resulting from any dramatic changes to the market. Local governments who have tax exempt bonds do so to take advantage of the lower costs and stability offered to build infrastructure and spur the creation of associated jobs. Repealing or limiting tax exemption for these projects will dramatically increase borrowing costs reducing the feasibility of many of these projects.

Sensational news stories of a looming municipal debt crisis – many warranted, many overblown – rang in the New Year. A few months later, uncertainty still overshadows the municipal bond market. Join our municipal bond experts for a timely, in-depth discussion on the critical topics in 2011, including:
•Municipal default fears. The threat of municipal bankruptcy is a powerful, emotional force in today’s market. But what’s the reality?
•Independent credit analysis. The three “must ask” questions to analyze any municipal bond investment in a post-insurance world – and why smaller issuers are often healthier credits.
•Traditional portfolio structure. Why a traditional portfolio structure is a sensible way to prepare for future bond market turmoil and volatility. How well do you know the bonds in your portfolio?